Monday, December 5, 2011

"...One is hard-pressed to find a business owner that isn’t interested in generating recurring revenue. In the systems integration industry, one of the ways of achieving this is through the sale of service agreements, contracts that bind clients to a fixed cost for maintenance, repair, and even emergency response. While those that have seen success with these swear by them, the reality is that few systems contracting companies have any kind of formal service agreement in place.

Why? For one thing, they’re not an easy sell, said Chuck Wilson, executive director of the National Systems Contractors Association (NSCA). 'The value proposition is that you are selling the finest product in the world and it’s superior in every fashion,' he said. 'When you turn around and say, ‘For this dollar amount, when it breaks, we’ll fix it,’ it’s difficult to rationalize...'"